My father taught me that courting and marriage must be a balance between the emotional and the rational sides within a person. Buying a franchise taught me the same thing. Franchisors and franchise applicants are looking for a long term commitment for a mutual benefit, and to complete each other.

No one would venture into a marriage with the prospect of failure or relying on a quick exit button called divorce. Buying a franchise or a small business is exactly the same. Sometimes a blinding romance can camouflage the realities and, just as divorce is financially and emotionally draining, so the costs associated with buying and selling a business can reduce its viability.

During the courting stage of any relationship, the building of trust is gradual. The franchisor will be your partner in business; do you know what youÍre looking for in that partner? Choosing the right product youÍll be selling or service youÍll be offering is a good place to start. If your interest in a product is the main reason for your decision to go into business, everything else will follow a logical pattern, because if youÍre passionate about the product you are more likely to succeed in selling it to customers. Compare the desire of having your own business, and thinking any business will do, with a smiliar attitude in marriage: then youÍre just as likely to marry the next guy that comes along in a neat suit, or the next girl in a sexy dress with no other merit and dire consequences.

The product has to be part of a proven concept that is complemented by quality and service. The concept has to have good potential and with adaptability to innovate and maintain relevance to suit changing consumer demands. Short term fads lack this scope for growth; they appear profitable in the short-term and die off suddenly with the next new fad, leaving you out of pocket. Finally, the concept, product or service has to be packaged in a good brand name with strong recognition. This is where the romance should begin — with the product.

Now that youÍre in love with the product, look for a franchisor that is particular and selective in choosing franchisees. The franchising process will take longer to complete all the steps; however, you will be assured that other franchisees in the system have been carefully selected, and will be at least at your level of enthusiasm, professionalism, motivation and outlook. If the franchisor is not particular and selective, then it is probably not in your best interests to be part of that franchise system.

Also ensure that the franchisor will support that romance with more than just pre-entry training. Ongoing support, great locations and a reputation for excellence in customer service are equally important. Strong business experience, coupled with financial strengths and strategic long-term thinking are imperative. Marrying an unrepentant partner with a bad reputation is the seed for disaster. This means that the personal integrity of the franchisor or the CEO must be above reproach. Beyond the glossy information in the Disclosure Document, you can search the internet, as well as the Australian and state government websites. Do not even consider a franchisor that has had any kind of action against them brought about by any government department.

If you find out about this type of government intervention: a) Find out how long ago it occurred? Anything in the last three to four years is worth worrying about, and b) What action did the franchisor take to remedy the situation? Are the personnel responsible still associated with the franchise, and in what capacity? Make a list of questions to ask about the product, its longevity, the franchisor, and their plans for the product, and the whole system.

Communicating with the franchisor

Now that you know what youÍre looking for, make contact with the franchisor, and seek answers to your questions. Remember that mutual openness and responsiveness are critical ingredients to the communications process. Avoid sounding like an interrogator by bombarding the franchisor with questions. Balance your questions with the provision of information about yourself. Start with a strong and positive impression. Tell the franchisor why youÍre interested in this franchise system. Briefly talk about your background, what experience you have that would be relevant and transferable to this franchise system. You need to show that you care and that you have an understanding of their business, and also a desire to learn more. The figure below shows the balance between openness and responsiveness in communications.

Some franchisors may ask for a Confidentiality Agreement prior to answering detailed questions. In that case, ask for answers in general terms, and remember that you should get all your answers during the disclosure stage (meaning, in the Disclosure Document). The final decision will be made on the basis of the disclosures by both parties.

Look at the whole business, not just one number. A franchise that has low fees does not necessarily mean that it will be more profitable than a franchise with high fees. Those with strong business experience know that there are so many variables to the success and long term viability of the business, that it is impossible to just pluck a couple of numbers or percentages to create a reliable conclusion.

In order to make a highly informed decision to proceed, discuss the whole business model with your business advisor or mentor. Look for advisors or mentors that are experienced in franchising as they have the right training and skills to assess your franchise proposal and help you put together the right business structure for the purchase, whether it is the financing arrangements, setting up the business entity, or even early tax planning. All of these can be costly, if not given early consideration. Be prepared to pay for that advice as it will be worthwhile. ThereÍs an old proverb that says “Where there is no guidance, a people falls, but where there is an abundance of counsellors, there is safety.”

Let the franchisor know if you are genuinely interested in their business, and the timeframe that you would like to complete the process. Allowing for your investigation and due diligence, the legal processes, the two week disclosure period, training and other aspects of the selection and induction process, it is extremely difficult for any reputable franchisor to complete that process — without rushing — in less than three months. Rushing will inevitably lead to mistakes that can be costly. Do not sign up with franchisors that will fast-track you through the process.

Finally, you must debunk the quick-buck myth. Everyone has heard of quick success stories about a friend of a neighbourÍs cousin that caught a 10 kilo fish, yet no one has seen it. Or at the racecourse getting a hunch on a horse, betting $1 to win $100, yet no one mentions how he lost on all the other horses before getting the solitary big win. There are similar stories in business like the one that bought a small business or franchise for very little money, and sold it for heaps of money in around two years or so. These are often perpetrated myths. If and when they happen, they are as rare as winning the lottery – one in a million. The romance with the quick buck results in castles in the air, baseless dreams. For most of us, it is hard work, over a period of time that produces results.

Nader Seifen, Spindletop, is a former franchisee and now consultant and advisor to franchisees and franchisors